Cash Flow With Joe

Planning For The Future

by | Jan 25, 2016 | Insurance | 1 comment

Assuming there is such a thing, I went to a good funeral recently. It was for a wonderful young woman named Amanda Mitchell. She died at age 35. Hers is a remarkable story of bravery, faith and love.


Early in Amanda’s second pregnancy, the doctors found a softball-size tumor on her colon. The recommendation was to abort the pregnancy and treat the tumor. This violated Amanda’s faith system. Instead, she decided to give life to baby Caleb even if it cost her her own… is there a greater love than that?


Everyone at the funeral stood as Amanda’s husband, Bruce, and mother, Josie, entered the room. They looked totally distraught and disoriented as they walked to their seats. We all sat. The speaker got up and said that we were going to do one of Amanda’s favorite things. That is when the praise service started.


During her funeral, Amanda’s family lifted their hands in praise for a good 20 minutes.


“How can you praise at such a terrible time?” I thought. Truthfully, I have never been so inspired.


Then speaker after speaker got up and talked about how wonderful this young woman’s life was. They spoke of how she inspired countless people with her faith before and especially during her fight with cancer.


By all accounts, she was positively a joy to be around and a totally selfless person. She gave her life for those she loved. Amanda is my hero!


What does this have to do with real estate investing?


Real estate investing is all about planning for our financial future. We are planning for our rental property to pay us and our families so we don’t have to work. But what happens if you do not make it to that future?


Amanda’s passing really got me thinking about life insurance. So, Ashley and I met with an insurance agent. I was shocked at the amount of things to consider.


The first thing to consider is the cost of your funeral. Our agent recommended a permanent $25,000 policy. A “permanent” policy lasts forever. Your death will be a hard time for your loved ones. Having this money in place will give them peace of mind knowing they can afford to lay you to rest.


Next, you need to think about insuring your family’s financial needs. You can do this with a term policy. This type expires some time in the future and can be purchased in 15-30 year terms. Since they expire, the term policies are cheaper than permanent policies.


You need both. Remember: permanent puts you in the ground, while term protects your family from financial ruin.


So how much term insurance do you need?


To answer that question, calculate all of your debts. This includes car loans, student debt, medical debt and everything else you can think of.  For investors, this includes your real estate debts. Total up all the mortgages you have against all your rentals and include that in your policy.


If you die young, your family will be able to payoff all your rental properties. Income from paid-for rental properties is what real estate investing is all about. By planning this way, you know you provided financial freedom for your family.


Life insurance is something many don’t like to talk about. It is scary and uncomfortable to think of your own death. As investors, we have to get out of our comfort zones to make a future for ourselves and our loved ones.


Words do not describe the amazing act of love Amanda preformed for Caleb. She faced death to give him life. Getting life insurance doesn’t compare to what Amanda did. But by having a policy in place, you can still give those you love a life- even through your death.


Joe and Ashley English are full time investors in North West Georgia. For more info, visit

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